Don’t count on bank for your second home loan
People looking for a home loan in India to buy flats larger than their current homes as an investment option, or to secure the future of their children, may now find it difficult to obtain finance. Banks, which once zealously solicited loan takers, are now turning them away.
In line with the RBI’s ‘warning signal’ to banks issued earlier this week on credit policy, Finance Minister P Chidambaram has urged banks to curtail their lending to ‘overheated sectors’ like real estate in India.
“While it is a good sign that people are willing to leverage current earnings over a longer term to acquire assets of a much larger size, we must be on guard on this,” he said at a banking conference in Hyderabad.
What Chidambaram meant was that although investing with an eye on the future is sensible, care should be taken to discourage speculative buying.
Source: http://www.dnaindia.com/report.asp?NewsID=1062035
In line with the RBI’s ‘warning signal’ to banks issued earlier this week on credit policy, Finance Minister P Chidambaram has urged banks to curtail their lending to ‘overheated sectors’ like real estate in India.
“While it is a good sign that people are willing to leverage current earnings over a longer term to acquire assets of a much larger size, we must be on guard on this,” he said at a banking conference in Hyderabad.
What Chidambaram meant was that although investing with an eye on the future is sensible, care should be taken to discourage speculative buying.
Source: http://www.dnaindia.com/report.asp?NewsID=1062035
posted by Real Estate India at
1:16 AM
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